Pledged as collateral on a number of loans which are now in default, it’s a plugged-in tipster that notes “the Debtors’ respective membership interests in the limited liability companies” which own the following properties are scheduled to be sold on December 12:

UPDATE: As a reader quickly catches, it’s the Membership Interests in the LLCs that own the properties above which are being auctioned against $29,700,000 in mezzanine debt that’s in default and the properties listed above remain “encumbered by a deed of trust that secures the Property LLCs’ total aggregate indebtedness to a senior mortgage lender in the original principal amount of $103,300,000.”

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Comments from “Plugged-In” Readers

So wait, are these buildings that they haven’t lost already? They went through a few waves where the bank took the bldgs back and they were sold off. Is this a new batch?
These guys must still own rental properties in SF; can’t imagine they lost them all??

sfrenegade wrote:
> I’m betting that building in Burlingame
> is commercial.
All of Burlingame Avenue East of El Camino Real is Commercial. The street had real low turnover when I was a kid (When I was in college the old Italian butcher at Bon Appetit Foods where my Mom bought meat for years was still giving free coffee with a shot of brandy) but in recent years it seems like every time I drive down the street half the business are new (even the Chevron that was on the corner of El Camino for as long as I can remember is gone)…

Looking at the legal notice, it appears that what is being auctioned off is an interest in the LLCs holding the mezzanine loans on these buildings, not the buildings themselves. The buyers would just be taking the place of the current lenders who are probably in third place behind the first and second leans.
[Editor’s Note: Good catch and since re-worded above.]

“Looking at the legal notice, it appears that what is being auctioned off is an interest in the LLCs holding the mezzanine loans on these buildings”
If there are just the interest in the LLCs securing mezz loans, I’m not sure that they’re worth that much. The senior lienholder holds all the cards here. The purpose of the mezz structure sounds good in theory — i.e. that you can seize the holding company much more easily than you can foreclose on a property. But in practice, I don’t really understand why it’d be worth a whole lot more than the original loan.
Funny that you mentioned Frank Lembi on the mezzanine before. Maybe you should re-title it “Listening on the Mezzanine to the Fat Lady Sing Over at CitiApartments.”